The Biden administration announced on Thursday that it will provide an additional $1.2 billion in student debt relief for 35,000 borrowers through the Public Service Loan Forgiveness program.
The PSLF program offers loan forgiveness for individuals working for governments and certain nonprofits, such as teachers, nurses, or firefighters, who have made at least 10 years of payments on their outstanding balance.
The White House stated that this latest round of forgiveness brings the total number of Americans benefiting from debt relief initiatives to 4.76 million, with an average forgiven debt amount of approximately $35,000 per borrower.
“These 35,000 borrowers approved for forgiveness today are public service workers – individuals like teachers, nurses, law enforcement officials, and first responders who have dedicated themselves to strengthening their communities. Thanks to the improvements made to the Public Service Loan Forgiveness program, they will now have more financial stability to support themselves and their families,” said President Joe Biden in a statement.
RELATED STORY | Judges block some of Biden’s student loan repayment plan
Public service workers become eligible for debt cancellation after making 120 qualifying monthly payments under an approved repayment plan while working full-time for a qualifying employer.
This announcement comes amid the administration’s efforts to reduce the burden of student loan payments on borrowers. A federal judge recently ruled in favor of a group of Republican attorneys general, preventing the administration from implementing the SAVE Plan, which aimed to forgive up to $20,000 of federal student loan debt per borrower.
The White House also mentioned that borrowers enrolled in the SAVE Plan who made payments for at least 10 years and originally borrowed up to $12,000 are now eligible for automatic loan forgiveness.
Furthermore, for additional amounts borrowed above $12,000, forgiveness can be granted after an extra year of payments. This means that borrowers in the SAVE Plan with an initial debt of up to $21,000 will have their loans forgiven after 20 years of payments.
While the legal battle continues, the ruling prohibits the Biden administration from carrying out further forgiveness under the SAVE Plan.
Republicans have criticized student loan forgiveness, arguing that it unfairly impacts those who did not attend college.
President Biden defended his administration’s efforts to provide relief, stating, “From day one of my Administration, I promised to fight to ensure higher education is a ticket to the middle class, not a barrier to opportunity. I will never stop working to make higher education affordable – no matter how many times Republican elected officials try to stop us.”
